SocGen is one of the leading financial institutions group in Europe, operating in 83 countries with over 150,000 staff from 128 nationalities. The Group is organized around 5 groups: French networks, international retail banking, specialized financing and assurances, investment management and corporate and investment banking. As of March 2010, SocGen’s long term rating was Aa2 at Moody’s, A+ at Standard & Poor’s, and A+ at Fitch. As of December 31, 2009, SocGen had a consolidated customer loan portfolio of over €344 billion, shareholders’ equity of €42.2 billion, and net income of €678 million for the fiscal year. Its BIS capital adequacy ratio was 13.0% as of December 31, 2009. IFC has developed a strong client relationship with SocGen over the past several years, with the SocGen CELT Facility in Russia, Ukraine, and Georgia and co-investment collaborations in Sub-Saharan Africa and other regions.

The aggregate investment amount of the investment package with SocGen is €270 million (US$365 million). The proposed investments will be in the form of equity, quasi-equity and senior debt.

159.76 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.44
Equity	9.32

* These investment figures are indicative

The proposed investment package for SocGen subsidiaries will cover countries in CEE including Serbia, Georgia, Albania, Belarus, Moldova, Macedonia, and Bulgaria.

The Development Impact is expected to be strong in terms of (i) strengthening and, in certain cases, recapitalizing financial institutions in Cental and Eastern Europe and (ii) supporting agribusiness, climate-related projects and SMEs, sectors in which SocGen subisidiaries have a good presence in the targeted markets.

(i) Enhancing the capacity of SocGen subsidiaries to provide funding to agribusiness, climate-related projects, SMEs, and other critical sectors of the real economy whose access to finance has been curtailed by the global financial crisis; and (ii) providing financing in the form of equity, quasi-equity and senior debt under the Joint IFI Action Plan.

This new Category FI project with an existing IFC client involves support of seven institutions in SocGen''s network (including two in IDA countries and two existing IFC clients) to factor (i) projected business growth, (ii) capital requirements, and (iii) ability for SocGen to take additional country exposure in CEE countries. The key risk is to ensure consistency among the subsidiaries in managing environmental and social risks. The client will be required in each of the eight subsidiaries to (i) nominate a social and environment management system (SEMS) officer and (ii) develop an SEMS to screen investments against the IFC exclusion list, national laws and/or IFC performance standards; (iii) develop implementation guidelines as per an agreed SEMS plan, and (iv) submit a periodic report to IFC as per a format to be provided by IFC. IFC''s appraisal will focus on the client''s S&E due diligence capacity and better understand the subsidiaries'' portfolio to confirm applicable requirements.